ABS-CBN reported a 14 percent year-on-year drop in net losses to P3.4 billion in the first six months of 2021.
In the second quarter alone, ABS-CBN slashed its losses by 54 percent to P1.44 billion from the previous year’s level.
Katigbak was able to match the P5.159 drop in revenues with the same amount of cutbacks in expenses specifically production costs and administrative expenses.
Advertising revenues plunged by P3 billion or 57 percent year-on-year to P2.23 billion as ABS-CBN has stopped airing on free TV since its franchise expired in May 2020.
Aside from falling ad sales, ABS-CBN was also stopped from offering Sky Cable’s direct-to-home services and distributing TV Plus digital boxes which reduced sales by P2.19 billion or 27 percent year-on-year to P5.925 billion in the first half.
Katigbak aligned its production output based on its deals with various free-to-air operators such as Brother Eddie Villanueva’s Zoe Broadcasting and its cable and digital streaming Kapamilya channels.
Production costs fell by P1.822 billion or 323 percent year-on-year to P3.732 billion.
He also enforced stringent cost-cutting measures in general and administrative expenses which dropped by P2.5 billion or 40 percent year-on-year to P3.77 billion in the first six months this year.
Katigbak also generated cost savings after pulling the plug on ABS-CBN’s theme parks, home shopping, and licensing and merchandising division.
Despite losing its franchise, Katigbak increased ABS-CBN’s capital expenditures by 14 percent year-on-year to P1.8 billion in the first half this year.
Unfortunately, its Sky cable and broadband business posted a net loss of P35 million in the first six months this year from a P106 million profit a year ago.